EURUSD spent yesterday under bearish pressure. Within the scope of yesterday’s European trading session, the currency pair formed a price range - 1.2825-1.2867. The downward pressure intensified after Italy published a weak report on manufacturing orders.
So, the currency spent the most of the trading day within the scope of the mentioned price range. During the American trading session, the pressure intensified amid Mario Draghi’s speech.
The ECB is going to be active in managing its balance sheet. The central bank looks determined to implement more stimuli if needed in order to prevent deflation in the Eurozone, Mario Draghi said.
Meanwhile, The President of the Federal Reserve Bank of New York Dudley says that the Fed fails to accomplish all of its tasks on time. He says that current low interest rates are uncomfortable. He is looking forward to interest rate hikes as soon as possible. Janet Yellen says that the process will depend on future economic performance coupled with the pace at which the Fed is nearing its goals.
Meanwhile, Masterforex-V Academy reports that the mid-term downtrend is still underway. The currency pair, which is EURUSD, broke below the bottom of the 1.2825-1.2867 range to set a new local low at 1.2815. The mentioned level is the intraday low at this point. Still, this is not a true breakout yet since the price hasn’t consolidated below the bottom yet. A break below the local low is needed to confirm the breakout and to resume the bearish tendency.
